ELTIFs are a relatively new generation of investment vehicle. Like UCITS funds, they are highly regulated and aimed at limiting risk. ELTIFs allow retail investors to access asset classes that have historically been the domain of institutional investors.
The new product, designed by Muzinich and realized in partnership with Cordusio SIM, is a multi-credit strategy and uses Muzinich’s best expertise across the spectrum of corporate credit.
Firstlight will invest in a dynamic portfolio of liquid (European syndicated loans and high yield bonds) and illiquid (European private debt) instruments. The fund’s main objective is to preserve capital and intends to offer protection against rising interest rates and volatility. The fund has been structured to distribute attractive coupons on a regular basis throughout the lifetime of the fund.
“In structuring Firstlight, we have carefully combined a range of asset classes that, in our view, deliver a solution that is closely aligned to the needs of retail investors, while helping to support the broader European economy” said Filomena Cocco, Muzinich’s Managing Director - Business Development, Europe.
Manuela D’Onofrio, Cordusio Head of Investment & Products said: “Being market innovators in an ever-changing world allows us to welcome new opportunities. In the current context, which envisages moderate rates growth and inflation that is unlikely to reach 2%, it is necessary to create instruments that can generate returns even for those clients less inclined to riskier investment classes. With Firstlight we are now able to offer a service aimed at concretely supporting the real economy of European companies.”
The strategy will be made available to investors throughout Europe and the UK.
